Mainland Company Formation .

Everything You Need to Know About the Trading Industry


Since its inception, UAE has been a trading hub. Therefore, investment in the trading industry of UAE is one of the safest for foreign opportunists. Dubai is strategically centred at a prime location with access to 8 billion people in a matter of hours. Due to its benefits, traders from nearby countries have set up stations for banking and business in the UAE. Dubai also offers added advantages such as zero currency and foreign exchange restrictions. UAE market mainly dwells on re-export of goods through perfectly-linked airports and structured seaports. The most common forms of trade in UAE are food, cosmetics, medical supplies, gas and oil products.

Tip#1: Prepare your game plan

As an entrant into the UAE trading industry, you have one of two options. Either establish your business as a local company in one of the seven Emirates through Mainland Company Formation or register in one of the many free zones in the UAE.

An efficient business plan might be the prerequisite of certain administrations. It must comprise of the following information:

  • Types of Products to be marketed
  • Target Market and Niche
  • Requirement of Office Space
  • Estimated Investment
  • Information of suppliers and sources
  • Main competitors in the market
  • Employee Number
  • Employee Status
  • Business Success Factors

It is preferrable to do business as a Mainland Company Formation. It allows foreign investors to conduct business anywhere in the United Arab Emirates including any free zone. Primarily, you have a number of options to start your trading business. You can set up a posh, branded outlet in any of the shopping centres, align yourself with larger foreign manufacturers to sell products in a specific region or rent an outlet in the wholesale market.

Tip#2: Choose the activity and jurisdiction wisely

A trader has the option to select from two types of trading licenses, a General Trading license and Specific Trading licenses. The General Trading license permits you to trade in a number of products where as the specific trading license only permits trade in certain products. However, the former is much more expensive.

Furthermore, depending on the type of company registration you choose as an entrant to the trading industry, you can either obtain a company license as a Free zone company with 100% ownership or a Mainland company which requires a local sponsor. If you plan to sell to government entities, acquire shops or wholesale outlets; you might need additional local licenses.

Company registration in UAE can be quite complex. That is why we recommend you follow Tip#3.

Tip#3: Take a Free Business Consultation

The United Arab Emirates offers a plethora of options when you register a company. It often gets complicated for new traders as they need to decide between 2200+ licenses and 30+ jurisdictions. You are one move away from a disaster.

A lot of jurisdictions are restrictive when it comes to activities. Each jurisdiction particularizes itself in one way or the other.

You might be stuck for days trying to find the best fit for you. To rid yourself of the hassle and errors, we recommend you consult with experts.

Business setup consultancies such as KWS Middle East offer guidance and professional opinions which lay out a smooth path for your entry into the trading industry in UAE. The complexities of business setup in the UAE make it difficult for individuals to set up on their own. Hence, you require a guiding force which will hold your hand and navigate through the endless regulations and rules imposed by the United Arab Emirates government.

Professional consultancies make budget estimation a whole lot easier for you. They provide itemized costs for the entire business setup. Be it Free zone or Mainland Company Formation. Trade registration agents also offer aid in opening bank accounts which is a tedious process on its own.

Leave A Comment

Latest Articles